Ruth Ibikunle
The Nigerian stock market last week closed on a bullish note with 0.71% growth. Year to date the market has returned 12.15% with the All Share Index and Market Capitalisation at 115,429.54 points and N72.788 trillion respectively.
In a stock market review with the MD/CEO of APT Securities Limited, Mallam Garba Kurfi, the following were discussed:
Excerpts
The stock market last week closed on a positive note with 0.71% growth. What is the outlook for the new week?
Normally, the Stocks Market does not go up in the month of June, but we experienced a difference this year. This may be as a result of good economic policies advocated by the President. Also, foreign investors’ inflow contributed to the rise in the market.
It should also be noted that the successful capitalisation of Banks attracted new Investors into the market. Alternative investments such as FGN SUKUK, ETF, and mutual funds gave better chances for diversification.
The good trend in the market is likely going to continue, but the recent CBN circular on Dividend and Bonus not to be declared by Banks needs further clarification, otherwise the prices of Banks stocks may be affected.
What is driving the growth in Legend Internet, Berger Paints and Ellah Lakes?
Legend is a newly listed company in the Telecommunications sector with a lower price. The price fall was for a purpose. Having achieved it, It is likely going to rise while expecting Q3 results. The rise in Berger Paint and Ellah Lake is because of their Q1 2025, which is very good and promising.
How sustainable is the growth in Oando? Is it a good buy at N69?
Oando has not released their Q1 2025, which hopefully will be good and their is another bonus qualification date by the end of June 2025, this will sustain the momentum for the price. For long-term and medium terms, Oando is a good buy.
What is driving the growth in Fidson and FTN Cocoa?
The Q1 2025 of Fidson is very good and promising, the same with FTNCOCOA, especially that they are now in production, this will boost confidence in the investors.
How attractive are First Holdco and Accesscorp?
First Holdco is very attractive considering the facts that it traded at N44 before. It is safe to say that it can repeat the same or even perform more, having met its recapitalisation. This is also applicable to Access Bank, they are both good to buy at the current market price.
What are the stocks to watch?
The stocks to buy are Access, First Holdco, UBA, Aradel, AIICO, WAPCO, BUA Cement, Dangote Cement, among others.